Working Paper: CEPR ID: DP4015
Authors: Doris Weichselbaumer; Rudolf Winterebmer
Abstract: This Paper evaluates the impact of economic and legal variables on wage differentials between men and women. Since Becker (1957) economists have argued that competitive markets eliminate discrimination in the long run. On the other hand, practically all countries have enacted some sort of law mandating equal treatment of men and women. This Paper uses a new international data set on the gender wage gap, which is constructed via a meta-analysis of existing studies. The findings show that both increased competition and the enactment of equal treatment laws reduce the gender wage gap.
Keywords: competition; equal treatment law; gender wage gap
JEL Codes: J16; J31; J71
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increased competition (economic freedom index) (P19) | Decrease in the gender wage gap (J79) |
| Ratification of equal treatment laws (J78) | Decrease in the gender wage gap (J79) |
| Protective labor standards (J89) | Increase in the gender wage gap (J79) |